"The interest rate for OCBC's 90-day Sora home loan is calculated based on the simple average of the daily Sora rates over the past 90 calendar days ahead of the loan repayment period.
The 90-Day SORA value is updated every month instead of every three months for a particular loan. The interest rate is calculated based on the simple average of the daily SORA rates over the past 90 calendar days to determine the repayment in advance. Get unlimited access at $0.99/month*
OCBC's Sora loan package has a one-year lock-in period, which means customers can switch to another home loan package after a year at no cost.In-depth analyses and award-winning multimedia contentGet access to all with our no-contract promotional package at only $0.99/month for the first 3 months*
The remaining rates (which should come from at 10 banks) are averaged to make the day’s SIBOR.SORA is the average rate of unsecured overnight interbank SGD transactions brokered in Singapore from 9.00 am to 6.15 pm, published publicly by MAS daily since 1 July 2005.The OCBC 90-day SORA rate is determined by taking a simple average of the daily SORA rates of the past 90 calendar days. OCBC makes first loan using Singapore's new SORA benchmark OCBC has made a S$150 million loan referencing SORA - the Singapore Overnight Average Rate - the first loan … But a log-in is still required for our PDFs.Share gift link below with your friends and family.They can read the article in full after signing up for a free account.Please verify your e-mail to continue reading the article.The gift link for this subscriber-only article has expired.Get unlimited access to The Straits Times and more at S$ 0.99/month.You have reached your limit of subscriber-only articles this month As this product is the first-of-its-kind in the market, we would like to give customers the opportunity to discover more about this product, and to better understand SORA as a new reference interest rate.”The use of SORA calculated over the 90-day period computed on simple average basis has several benefits:A summary of the key differences between a 3M SIBOR and 90-Day SORA home loan package is set out below:Pegged to the 3-month SIBOR and reviewed every 3 monthsInstalments can increase or decrease depending on the SIBOR rateThe average of the daily SORA rates over the past 90 calendar days.
OCBC’s Sora loan package has a one-year lock-in period, which means customers can switch to another home loan package after a year at no cost. SINGAPORE (THE BUSINESS TIMES) - OCBC Bank has launched Singapore's first home loan referencing the Singapore Overnight Rate Average (Sora), an alternative benchmark rate, available to buyers of completed private properties with a minimum loan size of S$1 million. SINGAPORE (THE BUSINESS TIMES) - OCBC Bank has launched Singapore's first home loan referencing the Singapore overnight rate average (Sora), an alternative benchmark rate, available to buyers of completed private properties with a minimum loan size of $1 million.This is another step in the industry's move toward adopting the Sora - the average rate of unsecured overnight interbank Singdollar (SGD) transactions brokered in Singapore - as the new interest rate benchmark for the SGD cash and derivatives market.Compounded Sora rates, which are backward-looking overnight rates, are thought to offer more stability compared to forward-looking term rates commonly used for floating home loan packages in Singapore, such as the Singapore Interbank Offered Rate (Sibor).
In general, for floating rate home loans only, OCBC offers a 50% waiver of the lock-in penalty (typically 1.50% of the loan redeemed) if the redemption during the lock-in period is due to a sale of the property.
This results in Sora being typically lower than Sibor - at an average of 0.35 per cent, based on OCBC's computations using variances between the rates from Jan 1, 2019 to June 30, 2020.
90-Day SORA (For new loans, completed private properties, minimum loan size of S$1 mil) OCBC 2y fixed rate: OCBC mortgage board rates: 3M SIBOR: 90-Day SORA (Simple Average)